China 4G mobile network expenditure forecast at US$11.2 billion for 2014

Wireless infrastructure spending by the mainland's three telecommunications network operators is primed for a solid increase next year, following Beijing's decision to award 4G mobile licences by the year-end.

The State Council, in a meeting chaired by Premier Li Keqiang, announced late on Friday that the government would accelerate plans to upgrade the nation's internet and telecommunications infrastructure, which will include the granting of 4G licenses in the fourth quarter.

David Dai Shu, a director at ZTE, the world's fifth-largest telecommunications equipment supplier, said: "The development of the country's 4G market over the next three years will provide an important opportunity for all the major telecommunications systems vendors, including ZTE."

Market research firm IHS has predicted that 4G initiatives will help spur total wireless infrastructure spending by China Mobile, China Unicom and China Telecom to US$11.2 billion next year, from an estimated US$10 billion this year and US$10.7 billion in 2011.

Next year's projected expenditure tops the more than US$6.3 billion spent by the three network operators in 2009, when they made massive 3G equipment purchases a year after receiving their respective 3G licences.

Dai pointed out that 4G investments this year will be dominated by China Mobile, which launched last month a equipment tender for its plan to install 207,000 new 4G base stations across the mainland. "Over the long term, the scale of 4G network expansion in mainland China will be greater than that of 3G networks," he said.